Canadian Superior Energy Inc. Contracts Kan Tan IV Semi-Submersible Drilling Rig to Commence Drilling of Two 'Intrepid' Block 5c Offshore Trinidad Wells
Monday March 20, 8:30 am ET
CALGARY, Alberta & COPENHAGEN, Denmark--(BUSINESS WIRE)--March 20, 2006--Canadian Superior Energy Inc. ("Canadian Superior") (TSX:SNG - News; AMEX:SNG - News) of Calgary, Alberta said today it is pleased to announce that it has entered into a firm multi-well contract for the Kan Tan IV Semi-Submersible Drilling Rig, managed by A. P. Moller - Maersk A/S, of Copenhagen, Denmark (trading in the name of Maersk Contractors), and owned by BeijingZhiyuan Industries Company Limited, of Beijing, China to drill its first two exploration wells on Canadian Superior's "Intrepid" Block 5(c) offshore Trinidad. Canadian Superior said today it plans to commence drilling on the first of two back to back wells to evaluate two separate large 3D seismically defined potential natural gas structures with the Kan Tan IV rig as soon as the Kan Tan IV has completed a scheduled refurbishment currently underway in Brownsville, Texas.
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Speaking today, Mike Coolen, Canadian Superior's Vice President and a Director of the Company said, "I am very pleased that the Kan Tan IV has been secured and we are very busy implementing the detailed drilling program for these first two wells. Both BeijingZhiyuan Industries Company Limited, their Parent Company SINOPEC Star Petroleum Co., Ltd., and their managing contractor A. P. Moller - Maersk A/S are first rate experienced companies and all of the companies have worked very hard with us and it is a pleasure for us to be able to do business with them."
Canadian Superior expects the refurbishment to be completed in approximately 20 weeks and the rig is scheduled to commence drilling shortly thereafter, after it is tested and towed to the first location offshore Trinidad. In terms of the wells, each of these offshore exploration wells is expected to take between 80 - 100 days to drill and evaluate.
The Government of Trinidad and Tobago and Canadian Superior signed the Production Sharing Contract ("PSC") for offshore exploration and production on offshore Block 5(c), located approximately 90 km off the east coast of Trinidad in the Columbus Basin, less than one year ago on July 20, 2005. The "Intrepid" Block 5(c) covers 80,041 gross acres and has significant natural gas exploration and development potential offsetting the large Dolphin gas field operated by British Gas. Based on detailed 3D seismic, a number of large structural gas prospects have been identified on the "Intrepid" Block 5(c) with multi-tcf potential. Also on Friday March 17, 2006 British Petroleum (BP) announced it had just placed its "Cannonball" gas wells located offshore Trinidad on production. The wells are expected to produce a total of 800 mmcf/d (140 mboed). The gas field is estimated to contain over 2 tcf of natural gas (for further information, See: www.rigzone.com).
Canadian Superior's President and Chief Executive Officer, Greg Noval, said today, "We are very excited about commencing drilling in Trinidad and Tobago which is without question one of the most coveted oil and gas basins in the world and it plays an integral part in North America's natural gas supply, supplying approximately 80% of North America's LNG, and the Government and people of Trinidad and Tobago are very supportive of the oil and gas industry and proactive companies like Canadian Superior, and all of us look forward to working with them further on this exciting project."
BeijingZhiyuan Industries Company Limited is an affiliate of SINOPEC Star Petroleum Co., Ltd., a member of the Sinopec Group of companies. The China Petroleum & Chemical Corporation (Sinopec Corp), (NY: SNP), is primarily engaged in the petroleum and petrochemical industry. The Company's principal businesses consist of petroleum and petrochemical businesses transferred to the Company by Sinopec Group Company. Its businesses include exploration for and development of crude oil and natural gas; refining of crude oil and marketing and distribution of refined petroleum products, including transportation, storage, trading, import and export of petroleum products, and production and sales of petrochemical products.
A.P. Moller - Maersk A/S trades on the Copenhagen Stock Exchange and is headquartered in Copenhagen, Denmark and has more than 100,000 employees and offices in more than 125 countries. A.P. Moller - Maersk operates about 1,000 vessels and rigs half of which are owned. The fleet includes container vessels, tankers, gas carriers, car carriers and supply vessels as well as special vessels, drilling rigs, salvage vessels, tugs and special-purpose vessels. Besides shipping, the A.P. Moller - Maersk Group is engaged in exploration for and production of oil and gas, shipbuilding, supermarkets and industry.
Canadian Superior is a Calgary, Alberta based oil and gas exploration and production company with operations in Offshore Trinidad and Tobago, Offshore Nova Scotia and in Western Canada. See Canadian Superior's website at www.cansup.com to review Canadian Superior's Trinidad and Tobago holdings and the Company's offshore Nova Scotia interests and Western Canadian Operations.
This press release contains forward-looking information on future production, project start-ups and future capital spending. Actual results or estimated results could differ materially due to changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors or revisions.
